11/4/15 WAS DOWN another -$1.63 and the model projects that the component on the 11-4-15 kill will drop between -1.10 and -1.40. Packers are still lowering their bids at a rapid clip. It appears that producers were not very willing sellers at these lower bids because packers were only able to 88.3% of the moving average daily purchases. The reason i think it was "Foot-dragging" on the part of producers to sell rather than a shortage of hogs is because carcass weights are still firm. This opinion may be wrong because the kill has been trailing projections for the past ten days.

The ZZZs are trading discount to the component by 9.04. That may be giving traders a little bravery to put some back the ZZZs this morning.

Best wishes,

dhm